Microsoft 365 Subscription Error — Product Unlicensed & How to Fix It

What Does This Error Mean?

Microsoft 365 is showing a red or yellow banner saying your subscription is invalid or unlicensed. This means Office cannot confirm your subscription is active. Signing out and back in to your Microsoft account usually fixes it.

Affected Models

Microsoft 365 Personal
Microsoft 365 Family
Microsoft 365 Business
Office 2019
Office 2021

Common Causes

Your Microsoft 365 subscription has expired or the payment failed
You are signed in with the wrong Microsoft account (not the one that owns the licence)
Office cannot reach Microsoft's activation servers due to a network issue
A recent Windows update or Office update broke the activation link
You have installed Office on more devices than your plan allows

How to Fix It

Check that your subscription is active. Go to account.microsoft.com/services in your browser. Sign in and check if your Microsoft 365 subscription shows as 'Active'.

If it shows 'Expired' or 'Cancelled', you will need to renew or update your payment method.
Sign out of Office and sign back in. Open any Office app (Word, Excel). Click File > Account > Sign Out. Then sign back in with the Microsoft account that owns your subscription.

Make sure you use the exact email address linked to your Microsoft 365 subscription.
Run the Office activation troubleshooter. Open any Office app, go to File > Account, and click 'Troubleshoot'. Follow the on-screen steps to detect and fix activation problems.

This built-in tool fixes most common activation errors automatically.
Check your device limit. Microsoft 365 Personal allows Office on 1 device; Family allows up to 6. Go to account.microsoft.com/devices and remove old devices if you are over the limit.

If Office is installed on too many devices, it will show unlicensed on the newest one.
Repair the Office installation. Go to Control Panel > Programs > Programs and Features. Find Microsoft 365, click 'Change', then choose 'Quick Repair'. If that fails, run 'Online Repair'.

Online Repair takes longer but is more thorough — it fixes corrupted activation files.

When to Call a Professional

If you are on a work or school Microsoft 365 account, contact your IT department. Business licences are managed centrally, and your account may have been unassigned by an administrator.

Frequently Asked Questions

Can I still read my documents if Microsoft 365 says unlicensed?

Yes, but only in read-only mode. You cannot edit, save, or print until the licence issue is resolved.

My subscription is paid — why is Office saying unlicensed?

The most common reason is that you are signed in with a different Microsoft account than the one that holds the subscription. Sign out and sign back in with the correct account.

How many devices can I install Microsoft 365 on?

Microsoft 365 Personal covers 1 user on multiple devices but only active on 1 at a time. Microsoft 365 Family covers up to 6 different people, each on their own devices.